AppLovin stock roars as analyst sees an edge from AI in struggling mobile-ad market

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AppLovin shares added to their rally on the year after one Wall Street analyst upgraded the stock on the app-monetization company's AI advancements.

AppLovin Corp. shares rallied again Wednesday after a Wall Street analyst upgraded the stock and said the app-monetization company’s advancements in artificial intelligence puts it ahead of the competition.

AppLovin APP shares rallied more than 9% to an intraday high of $25.01, and have more than doubled in 2023 — rising more than 133% year to date — after a rough 2022. In the six sessions since the company’s earnings report last week, AppLovin shares have increased nearly 42%, its second-best six-session run, behind a 44.5% jump in May of last year, according to Dow Jones Market Data.

The analyst said AppLovin’s 48% rise year-over-year in revenue per install, while similar metrics at peers implied a decline, was indicative of “a machine learning edge in locating high lifetime value users for app advertisers,” and “market share gains among higher paying advertisers,” said he expects year-over-year pricing momentum to carry on throughout the fiscal year.

The BofA analyst, who upgraded AppLovin to a buy from neutral and hiked his price target to $27, said the staged rollout of AppLovin’s Axon 2.0 engine will accelerate revenue growth in 2023, and offer “clean beat-raise sequences as” the year unfolds.

 

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